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on Financial Literacy and Education |
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Issue of 2024‒02‒26
eight papers chosen by |
| By: | Siddiqi, Umema |
| Abstract: | The evolution of complex financial products is changing the landscape of the global financial system and to make informed financial choices, one must equip themselves with at least the basic financial knowledge. Financial literacy is a life-skill that must be possessed by all. In this study we examine the impact of cognitive ability and numeracy skills on financial literacy among adults in Pakistan. An online survey was conducted from February to April 2022, and responses of 163 individuals were collected on questions relating to demographics, financial literacy, cognitive reflection, and numeracy skills. The results of the study reveal a positive relationship between financial literacy, numeracy skills, cognitive ability, and some socioeconomic characteristics. It was also found out that education, income, and employment status significantly influence financial literacy levels. These findings add to the existing literature on financial literacy and provide valuable insights for policymakers to design effective and targeted financial literacy programs, which also focus on improving numeracy and cognitive skills to enhance individuals' overall financial decision-making skills. |
| Keywords: | Financial literacy; numeracy; cognition. |
| JEL: | D14 D83 O16 |
| Date: | 2023–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119781&r=fle |
| By: | Debuque-Gonzales, Margarita; Ruiz, Mark Gerald C.; Miral, Ramona Maria L. |
| Abstract: | The COVID-19 crisis created conditions for digital finance to accelerate financial inclusion in the Philippines. This paper explores different sources, including survey, administrative, and market data, to compare trends in account ownership and usage before and after the pandemic. Stylized facts about financial inclusion and demographic information across periods are then drawn based on probit regressions, with special focus on digital financial services. This is followed by an analysis of how service providers, consumers, and the government have shaped and continue to shape the digital finance landscape. The paper closes with conclusions and policy recommendations moving forward. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | COVID-19;digital finance;electronic money;financial inclusion;fintech;mobile money |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-45&r=fle |
| By: | Gabriel Bizama; Alexander Wu; Bernardo Paniagua; Max Mitre |
| Abstract: | This research aims to provide a framework to assess the contribution of digital currencies to promote financial inclusion, based on a diagnosis of the landscape of financial inclusion and domestic and cross-border payments in Latin America and the Caribbean. It also provides insights from central banks in the region on key aspects regarding a possible implementation of central bank digital currencies. Findings show that although digital currencies development is at an early stage, a well-designed system could reduce the cost of domestic and cross-border payments, improve the settlement of transactions to achieve real-time payments, expand the accessibility of central bank money, incorporate programmable payments and achieve system performance demands. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.09811&r=fle |
| By: | Prince HIKOUATCHA (University of Dschang, Dschang, Cameroon); Alain G. TAGNE FOKA (niversity of Dschang, Dschang, Cameroon); Armand D. FOSSI (niversity of Dschang, Dschang, Cameroon); Simplice A ASONGU (Johannesburg, South Africa) |
| Abstract: | Recent and ongoing advancements in the field of ICT have led to the introduction of increasingly diversified financial products, and their use is improving people's level of financial knowledge and skills. This article aims at assessing the effect of Fintech on the level of financial literacy of small business’ managers in Cameroon. To this end, information was gathered using a questionnaire from 209 small business managers in Cameroon. Descriptive statistics, Principal Component Analysis (PCA), and multiple linear regression are used. Results lead to two main conclusions. On the one hand, unlike knowledge of their existence, the frequency of use of Fintech tools is better able to contribute to improving financial literacy levels overall. On the other hand, specifically, this result is more important when it comes to competence and self-confidence in managing financial affairs. As a result, increasing the utilization of financial technology instruments in companies is imperative for efficiency. |
| Keywords: | Financial Skill; Financial Knowledge; Financial literacy; Fintech; Small business |
| JEL: | G53 M2 O33 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/070&r=fle |
| By: | Shishir Shakya; Nabamita Dutta |
| Abstract: | We examine a novel hypothesis about the mediation role of education in the relationship between individualism and female nancial inclusion. Grounded in the parasite-stress theory of values, which posits that regional variations in infectious diseases in uence cultural traits such as individualism, we employ causal mediation analysis within the instrumental variables framework. We dissect the total average causal e ect of the individualism-collectivism cultural dimension, as de ned by Hofstede's classi cation index, on female nancial inclusion, distinguishing between direct and indirect impacts via the education channel. We nd that education signi cantly mediates almost half of the overall in uence of individualism on female financial inclusion. Key Words: |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:24-03&r=fle |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | The purpose of this paper is to critically examine the multinational oil companies (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on enhancing rural women’s financial inclusion in the areas of access to credit, insurance, propensity of the women to save and widening of economic opportunities in the Niger Delta. A total of 800 rural women were sampled across the Niger Delta region of Nigeria. Results from the use of a combined propensity score matching and logit model indicate that GMoU model made significant impact on closing the gaps in financial services, thereby removing women’s constraints on their efforts to enhancing their financial literacy. The result also confirms that, innovative delivery channels and social networks of the GMoUs have reduced some costs in the areas of access to credit, insurance, propensity to save and widening of economic opportunities to rural women in the oil host communities. However, a further look at the rural women’s participation in the CSR activities using SCOTDI, shows that even though the involvement of the women is appreciable, yet it is insignificant when compared with their male counterpart. |
| Keywords: | Financial services, rural women, corporate social responsibility, multinational oil companies, Nigeria, sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/080&r=fle |
| By: | Jana Schuetz (Friedrich Schiller University Jena) |
| Abstract: | I conduct an online survey of 3, 000 respondents in the United States to examine individuals’ beliefs about the gender pension gap. By including an information provision experiment in which treated respondents are informed about the size of the gender pension gap, I examine whether receiving this information causally affects respondents’ perceptions of the fairness and drivers of the gender pension gap and their support for policies aimed at reducing it. I find that most respondents underestimate the gender pension gap and that treated respondents are less likely to perceive the gender pension gap as fair. In addition, treated respondents perceive the unequal distribution of care work and gender differences in wages as more important drivers of the gap, and their demand for remedial policies such as targeted financial education increases significantly. In terms of heterogeneity, I find that female respondents are generally less affected by the treatment than male respondents when asked about their policy views, although the treatment affects male and female respondents’ beliefs and perceptions about the gender pension gap similarly. |
| Keywords: | gender pension gap, survey experiment, information provision, pension reform preferences |
| JEL: | J26 J16 H55 C90 |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2024-004&r=fle |
| By: | ULLAH, nazim; Barua, Chayan; Haque, Ehsanul; Arif Hosen Raja, Md; Tahsinul Islam, Mohammed |
| Abstract: | Financial system and economic growth/development is a critical and multifaceted topic that holds significant importance in the context of a country's economic landscape. Over the 21st century, the relationship between economic growth/development and financial system has been the subject of increasing attention. The objective of this study is to assessing the role of Financial Institutions i.e., Islami bank and Conventional bank with real GDP growth and also to analyzing Financial Inclusion. We used the time series data of banks from the period 2018 to 2022.We also used secondary data for this paper. Our analysis found that Islami Banks shows higher contribution over the economic development then the Conventional Banks in Bangladesh. But there are more to go. Our recommendation is that making financial system more accessible through adopting new technologies can accelerate economic growth/development in Bangladesh. |
| Keywords: | Financial system, Economic Growth, Islamic and Conventional Banks |
| JEL: | A10 |
| Date: | 2024–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119937&r=fle |